Securities and Exchange Commission v. Imran Husain et al

Filing 79

JUDGMENT 78 by Judge Otis D. Wright, II: Defendant Gregg Evan Jaclin is permanently restrained and enjoined from violating Section 5 of theSecurities Act. Defendant is liable for disgorgement of $32,700, representing profits gained as a re sult of the conduct alleged in the Complaint, together with prejudgment interest thereon in the amount of $7,773.80. Defendant shall satisfy this obligation by paying $40,473.80 to the Securities and Exchange Commission on or before November 29, 2019. SEC has determined to forgo seeking a civil penalty against Defendant, and the claim for a civil penalty against Defendant is hereby DISMISSED with prejudice. (lc)

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UNITED STATES DISTRICT COURT

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CENTRAL DISTRICT OF CALIFORNIA

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Western Division

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SECURITIES AND EXCHANGE
COMMISSION,
Plaintiff,

Case No. 2:16-cv-03250-ODW (Ex)
JUDGMENT AS TO
GREGG EVAN JACLIN

vs.
IMRAN HUSAIN and GREGG EVAN
JACLIN,
Defendants.

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Case No. 2:16-CV-03250-ODW-E

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The Securities and Exchange Commission having filed a First Amended

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Complaint and Defendant Gregg Evan Jaclin having entered a general appearance;

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consented to the Court’s jurisdiction over Defendant and the subject matter of this

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action; consented to entry of this Judgment; waived findings of fact and conclusions

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of law; and waived any right to appeal from this Judgment:

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I.
IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant is

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permanently restrained and enjoined from violating, directly or indirectly, Section

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10(b) of the Securities Exchange Act of 1934 (the “Exchange Act”) [15 U.S.C. §

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78j(b)] and Rule 10b-5 promulgated thereunder [17 C.F.R. § 240.10b-5], by using

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any means or instrumentality of interstate commerce, or of the mails, or of any

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facility of any national securities exchange, in connection with the purchase or sale of

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any security:

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(a)

to employ any device, scheme, or artifice to defraud; or

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(c)

to engage in any act, practice, or course of business which operates or

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would operate as a fraud or deceit upon any person.

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IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as

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provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also

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binds the following who receive actual notice of this Judgment by personal service or

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otherwise: (a) Defendant’s officers, agents, servants, employees, and attorneys; and

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(b) other persons in active concert or participation with Defendant or with anyone

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described in (a).

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II.

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IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that

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Defendant is permanently restrained and enjoined from violating Section 17(a) of the

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Securities Act of 1933 (the “Securities Act”) [15 U.S.C. § 77q(a)] in the offer or sale

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of any security by the use of any means or instruments of transportation or

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communication in interstate commerce or by use of the mails, directly or indirectly:
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(a)

to employ any device, scheme, or artifice to defraud;

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(b)

to obtain money or property by means of any untrue statement of a

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material fact or any omission of a material fact necessary in order to make the

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statements made, in light of the circumstances under which they were made,

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not misleading; or

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(c)

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operates or would operate as a fraud or deceit upon the purchaser.

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IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as

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provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also

to engage in any transaction, practice, or course of business which

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binds the following who receive actual notice of this Judgment by personal service or

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otherwise: (a) Defendant’s officers, agents, servants, employees, and attorneys; and

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(b) other persons in active concert or participation with Defendant or with anyone

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described in (a).

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III.
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that

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Defendant is permanently restrained and enjoined from violating Section 5 of the

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Securities Act [15 U.S.C. § 77e] by, directly or indirectly, in the absence of any

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applicable exemption:

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(a)

Unless a registration statement is in effect as to a security, making use of

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any means or instruments of transportation or communication in

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interstate commerce or of the mails to sell such security through the use

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or medium of any prospectus or otherwise;

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(b)

Unless a registration statement is in effect as to a security, carrying or

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causing to be carried through the mails or in interstate commerce, by any

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means or instruments of transportation, any such security for the purpose

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of sale or for delivery after sale; or

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(c)

Making use of any means or instruments of transportation or
communication in interstate commerce or of the mails to offer to sell or
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offer to buy through the use or medium of any prospectus or otherwise

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any security, unless a registration statement has been filed with the

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Commission as to such security, or while the registration statement is the

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subject of a refusal order or stop order or (prior to the effective date of

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the registration statement) any public proceeding or examination under

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Section 8 of the Securities Act [15 U.S.C. § 77h].

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IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as

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provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also

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binds the following who receive actual notice of this Judgment by personal service or

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otherwise: (a) Defendant’s officers, agents, servants, employees, and attorneys; and

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(b) other persons in active concert or participation with Defendant or with anyone

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described in (a).

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IV.

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IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that

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Defendant is permanently restrained and enjoined from, directly or indirectly, aiding

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and abetting violations of Section 15(d) of the Exchange Act, 15 U.S.C. § 78o(d),

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which requires the filing by issuers of annual and quarterly reports in conformity with

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the SEC’s rules and regulations; and Rules 15d-1 thereunder, 17 C.F.R. § 240.15d-1,

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which requires the filing of accurate annual reports; Rule 15d-13 thereunder, 17

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C.F.R. § 240. 15d-13, which requires the filing of accurate quarterly reports; and Rule

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12b-20, 17 C.F.R. § 240.12b-20 thereunder, which requires an issuer to include in its

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annual and quarterly reports material information as may be necessary to make the

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required statements, in light of the circumstances in which they were made, not

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misleading.

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IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as

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provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also

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binds the following who receive actual notice of this Judgment by personal service or

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otherwise: (a) Defendant’s officers, agents, servants, employees, and attorneys; and
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(b) other persons in active concert or participation with Defendant or with anyone

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described in (a).

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V.
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that

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Defendant is permanently barred from participating in an offering of penny stock,

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including engaging in activities with a broker, dealer, or issuer for purposes of

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issuing, trading, or inducing or attempting to induce the purchase or sale of any penny

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stock. A penny stock is any equity security that has a price of less than five dollars,

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except as provided in Rule 3a51-1 under the Exchange Act [17 C.F.R. 240.3a51-1].

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VI.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant

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is liable for disgorgement of $32,700, representing profits gained as a result of the

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conduct alleged in the Complaint, together with prejudgment interest thereon in the

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amount of $7,773.80. Defendant shall satisfy this obligation by paying $40,473.80 to

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the Securities and Exchange Commission pursuant to the terms of the payment

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schedule set forth in paragraph VII below after entry of this Judgment.

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Defendant may transmit payment electronically to the Commission, which will

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provide detailed ACH transfer/Fedwire instructions upon request. Payment may also

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be made directly from a bank account via Pay.gov through the SEC website at

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http://www.sec.gov/about/offices/ofm.htm. Defendant may also pay by certified

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check, bank cashier’s check, or United States postal money order payable to the

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Securities and Exchange Commission, which shall be delivered or mailed to:

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Enterprise Services Center

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Accounts Receivable Branch

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6500 South MacArthur Boulevard

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Oklahoma City, OK 73169

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and shall be accompanied by a letter identifying the case title, civil action number,

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and name of this Court; Gregg Jaclin as a defendant in this action; and specifying that
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payment is made pursuant to this Judgment.
Defendant shall simultaneously transmit photocopies of evidence of payment

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and case identifying information to the Commission’s counsel in this action. By

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making this payment, Defendant relinquishes all legal and equitable right, title, and

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interest in such funds and no part of the funds shall be returned to Defendant. The

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Commission shall send the funds paid pursuant to this Judgment to the United States

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Treasury.

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The Commission may enforce the Court’s judgment for disgorgement and
prejudgment interest by moving for civil contempt (and/or through other collection

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procedures authorized by law) at any time after November 29, 2019, the date set forth

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in the payment schedule in paragraph VII below. Defendant shall pay post judgment

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interest on any delinquent amounts pursuant to 28 U.S.C. § 1961.

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VII.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant

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shall pay a total of disgorgement and prejudgment interest due of $40,473.80 to the

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Commission on or before November 29, 2019. The payment shall be deemed made

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on the date it is received by the Commission.

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VIII.

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IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the SEC

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has determined to forgo seeking a civil penalty against Defendant, and the claim for a

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civil penalty against Defendant is hereby DISMISSED with prejudice.

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IX.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the

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Consent is incorporated herein with the same force and effect as if fully set forth

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herein, and that Defendant shall comply with all of the undertakings and agreements

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set forth therein.

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X.

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IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, solely for

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purposes of exceptions to discharge set forth in Section 523 of the Bankruptcy Code,

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11 U.S.C. §523, the allegations in the complaint are true and admitted by Defendant,

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and further, any debt for disgorgement, prejudgment interest or other amounts due by

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Defendant under this Judgment or any other judgment, order, consent order, decree or

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settlement agreement entered in connection with this proceeding, is a debt for the

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violation by Defendant of the federal securities laws or any regulation or order issued

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under such laws, as set forth in Section 523(a)(19) of the Bankruptcy Code, 11 U.S.C.

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§523(a)(19).

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XI.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court

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shall retain jurisdiction of this matter for the purposes of enforcing the terms of this

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Judgment.

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XII.

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There being no just reason for delay, pursuant to Rule 54(b) of the Federal

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Rules of Civil Procedure, the Clerk is ordered to enter this Judgment forthwith and

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without further notice.

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Dated: August 1, 2019

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____________________________________

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Otis D. Wright, II

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UNITED STATES DISTRICT JUDGE

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